The benefits of using retirement plans such as a Roth IRA or a company sponsored 401k are huge. Many companies match 401k contributions now, and some of the best company matching contributions are as much as 2 to 1. The concern I have now is that so many people hear stories about how many people have lost their entire retirement savings in the stock market, or are badly hurt because they invested in stocks or mutual funds. I certainly hope that investors around the world don’t decide to get away from contributing to retirement plans and tax free distributions from the Roth IRA.

As an informed investor you must understand that you are in control of exactly what you hold in those retirement portfolios. There is no need for you to feel like you are boxed into any kind of investment, because there are so many options out there that can help you get to where you want to be. If you need financial advice seek a top retirement planner for guidance on what to put into your retirement portfolio, but certainly don’t forget to diversify.

Remember those who have been hurt the worst are those who have had their entire 401k in company stock. Having a little in company stock is fine, but never let yourself be boxed in by putting your retirement plans on the shoulders of one company. Also remember that retirement portfolios can hold safer investments such as treasury bills, certificates of deposits, and money market savings accounts.

There have been plenty of people lose a large amount in their 401k or IRA plans, but if you take the proper steps to diversify your portfolio you can minimize your risk. Please don’t stop using these plans which are extremely helpful in the long run if they are used in the proper way.